Perhaps I am under a rock, or perhaps my employer didn't bother saying anything, but my federal holdings went down about 1300 bucks from 2008 even though I made slightly more money. I thought it was because of that $800 tax credit when I saw the change in my paycheck, never really looked in to it. Anyone know what Barry went and changed? My fucking federal tax with holdings, what a MFing dipshit, just so it would look like more of a nice tax cut from him. While I appreciate them not being able to use my money for free, next time you adjust it, DONT FUCKING MAKE ME OWE MONEY.

So did I miss the public service announcement telling people they may want to look in to their with holdings? Or was there not one because he wanted everyone to think they were getting a nice tax cut from uncle Sam until they did their taxes only to find out they just took it in the ass. I cant believe they would be so naive that eventually people wouldn't figure it out so why the hell didn't more people know about this. I have talked to quite a few people who have been blindsided by this. One owes 5K, the other owes 4K, I owe 1500 (would have been 3500 if I didn't go back to school this year, yay I finally get a fucking deduction). Are you kidding me? So I pay 1300 less in federal with holdings and now I owe 1500 after Obama's $800 "tax cut" and could have been 3500. Did Bush's tax cuts expire, other tax cuts expire? There has to be a tax person on here that can explain this.

Anyways for those of you who didn't know about the with holding change and haven't done their taxes yet you may want to so you can plan ahead. Good luck to you. Thankfully I have savings that can cover this, but to the family living paycheck to paycheck, you're fucked if this happens to you. Sorry.

Oh and JB, don't you worry we repaid that unemployment not only in our paychecks for the last 6+ years, but also paid for it 5 times over this tax year in just federal taxes. So here is one for you too I even wrote off my deduction to Christianville in Haiti so here is a double

municipalmutt wrote:Just a heads up. There's a new deduction on line 8 called making work pay credit - 400 for single and 800 for married. Any little bit helps.

I actually took home less money each week (even after the bullshit tax cut) last year and still didn't have the withholding fed tax covered.

Yeah I got that "tax cut" I am just unsure of how it was really a tax cut. If my federal holdings go down 1300 and I get a federal tax cut of $800 the difference should be $500, not the $3500 I would have owed if I didn't start school this year. Something doesn't jive.

I hear ya man. All they did is reduce everyone's withholding and are making them pay it back in spades like you said. My withholding for last year was 1200 dollars less than the previous year yet I made almost 10k more. I think my raise put me in a higher bracket so not only did I get less every week I got a big surprise, instead of the usual 1800 to 2300 refund I get every year for the last five, I get dick and owe them 800 and change.

I got a hunch that everybody will be scrambling to get their W4 withholding changed after that bullshit.

If you're talking about what I think you're talking about, they cut the payroll taxes last year as part of the stimulus package. Your paychecks should have been slightly higher all year as a result, and I suppose it is possible that you underwithheld as a result of this. This is not a "fake tax cut", as you still earned more than you would have otherwise. Without more details, I can't tell you what happened (not a CPA, but several in my family).

municipalmutt wrote:I hear ya man. All they did is reduce everyone's withholding and are making them pay it back in spades like you said. My withholding for last year was 1200 dollars less than the previous year yet I made almost 10k more. I think my raise put me in a higher bracket so not only did I get less every week I got a big surprise, instead of the usual 1800 to 2300 refund I get every year for the last five, I get dick and owe them 800 and change.

I got a hunch that everybody will be scrambling to get their W4 withholding changed after that bullshit.

What do you mean here? Do you think you are taking home less total because you might be in a higher bracket now? If so, that's not how it works.

Yes, it definitely sucks to be expecting a refund and then find out you aren't getting as much as you thought or owe. But surely you noticed when your paychecks got bigger?

Also like to add that it is silly to overwithhold every year to get a return. The ideal situation would be to not pay any taxes until April 15th, and then cut a huge check.

I know more about pizza than you. Much more in fact. - Cerebral_DownTime

aoxo1 wrote:If you're talking about what I think you're talking about, they cut the payroll taxes last year as part of the stimulus package. Your paychecks should have been slightly higher all year as a result, and I suppose it is possible that you underwithheld as a result of this. This is not a "fake tax cut", as you still earned more than you would have otherwise. Without more details, I can't tell you what happened (not a CPA, but several in my family).

Did you read the link. Along with their "tax credit" (not tax cut, they are different) they changed the with holding tax rates. Since the beginning of me having a big boy job I have claimed 0 as I have no children and I didn't really care to change it when I got married. I claimed ZERO. I paid 1,300 bucks less than last year and my paychecks went up $30 and now I owe an additional 1500 bucks. Do the math, it doesn't work out. Talk about voodoo economics. For crying out loud, does that make sense?

aoxo1 wrote:If you're talking about what I think you're talking about, they cut the payroll taxes last year as part of the stimulus package. Your paychecks should have been slightly higher all year as a result, and I suppose it is possible that you underwithheld as a result of this. This is not a "fake tax cut", as you still earned more than you would have otherwise. Without more details, I can't tell you what happened (not a CPA, but several in my family).

I don't think you are following along very well. Did you read the link. Along with their "tax credit" (not tax cut, they are different) they changed the with holding tax rates. Since the beginning of me having a big boy job I have claimed 0 as I have no children and I didn't really care to change it when I got married. I claimed ZERO. I paid 1,300 bucks less than last year and my paychecks went up $30 and now I owe an additional 1500 bucks. Do the math, it doesn't work out. Talk about voodoo economics. For crying out loud, does that make sense?

A tax credit and a tax cut are effectively the same thing for the vast majority of people when the credit is dolled out weekly. Stop being pedantic.

Yes, I know the withholding rates were changed; the intention was for people to receive this tax credit slowly throughout the year rather than at the end of the year as a refund. I read the link and it didn't tell me anything I didn't know when they announced they were doing this a year ago.

Again, without knowing specifics of your situation (or the people you know), it is impossible to say what the problem is. The IRS (not the administration) produces withholding tables, which can be wrong in individual cases for a variety of reasons. I highly doubt they were trying to trick people. What, exactly, would be the benefit of doing that, especially considering most people didn't even realize their checks got bigger?

FWIW the Bush tax cuts are set to expire this year IIRC.

I know more about pizza than you. Much more in fact. - Cerebral_DownTime

I haven't done mine yet, but I have heard several (4 out of 10 so far) people at work complaining that they owe taxes this year when they always got a refund. I told people when this passed that it wasn't a 'tax cut' and all they were doing was adjusting the withholding tables. Everyone told me I was crazy and spewed this nonsense about $400 & $800 more per year. People are easily duped.

Anything is possible in the life of a man if he lives long enough. Even adulthood.--Howell Raines

Some 15 million Americans may face an unexpected tax bill when they file their 2009 return in April 2010. This issue stems from the overly generous tax credit implemented back in April 2009 that likely bumped up your weekly take-home pay.

The Associated Press reports that the average American's tax return is $3,000. So the net result of the unexpected tax bill is that you'll simply have a smaller return.

Those who will be affected may include the following:

• Taxpayers who have more than one job.• Taxpayers who are married with both spouses working.• Taxpayers who receive Social Security benefits while also earning taxable wages.

I know more about pizza than you. Much more in fact. - Cerebral_DownTime

aoxo1 wrote:Yes, I know the withholding rates were changed; the intention was for people to receive this tax credit slowly throughout the year rather than at the end of the year as a refund. I read the link and it didn't tell me anything I didn't know when they announced they were doing this a year ago.

Again, without knowing specifics of your situation (or the people you know), it is impossible to say what the problem is. The IRS (not the administration) produces withholding tables, which can be wrong in individual cases for a variety of reasons. I highly doubt they were trying to trick people. What, exactly, would be the benefit of doing that, especially considering most people didn't even realize their checks got bigger?

FWIW the Bush tax cuts are set to expire this year IIRC.

So did you change your withholdings? If this could have a dramatic effect on people dont you think they should have made it blatantly obvious. I am not just bitching for myself, I can cut the check, I am talking about the people who live paycheck to paycheck who are going to get hammered by this. Have you done your taxes yet? Because if you havent perhaps you can get back to me and see if you have the same situation.

If the point is to give a tax credit of $800 dollars (which I appreciate by the way) why did they change my withholdings to where I shorted the IRS $1300. I am not the only person I know this has happened to like I stated above. Then on top of that with a similar income to last year and having about a $100 return, I now owe 1,500 and apples to apples to 2008 with out my tuition credit it would have been $3500.

I never said they were trying to trick people, I even said there would be no point. Unless they really are as dumb as some think they may be.

The IRS is providing a new withholding adjustment option for pension plans as a way to get around some of the glitches that have developed with the new Making Work Pay tax credit.

In February, the IRS issued revised withholding tables incorporating the Making Work Pay credit, one of the key provisions of the American Recovery and Reinvestment Act. That change resulted in more take-home pay for over 120 million American households and provided an immediate economic stimulus, said the IRS.

However, the procedure for pensions that the IRS announced Thursday promises to make withholding more accurate for pension recipients, and, more important, allows pensioners to avoid facing a big tax bill next season. Some tax experts have warned that senior citizens, as well as younger taxpayers with second jobs, or whose spouses work, could face large tax bills or dramatically smaller refund checks as a result of the new withholding tables associated with the credit.

Guess this is me with my large tax bills. Not the end of the world besides pissing me off, but family of 4 barely making ends meet, tough shit. The fact that their was not a PR campaign is pathetic.

Oh and sweet, cant wait for those Bush tax cuts expire next year, maybe I should sock away $7000 for next years bill.

I'm holding out. I know I will probably be getting a refund, but the amount of calculations I have to do is offsetting. I have plenty of Schedule D calculations and have to work in my milage to see if itemizing nets me more of my money back.

Ugggghhhhhhhhh, and I have an accounting degree, and took all the elctive tax courses...

"When a man with money meets a man with experience, the man with experience leaves with money and the man with money leaves with experience."

Orenthal wrote:I'm holding out. I know I will probably be getting a refund, but the amount of calculations I have to do is offsetting. I have plenty of Schedule D calculations and have to work in my milage to see if itemizing nets me more of my money back.

Ugggghhhhhhhhh, and I have an accounting degree, and took all the elctive tax courses...

Imagine a gynecologist when he comes home from work.

Criminals in this town used to believe in things...honor, respect."I heard your dog is sick, so bought you this shovel"

Ziner, it doesn't make sense that you would have that big of a swing from the change in the tables. Not sure if you own a house, but if so maybe you refinanced it and aren't getting as big of a deduction on the interest? I mean, it was $30 spread over 10 checks (40 weeks, I assume you get paid monthly? Otherwise they were definitely underwithholding you). People were only supposed to be getting $400, so the situations where it would be a problem would be something like 2 jobs (both employeers giving you the full amount), a spouse with an income that disqualifies you, or something similar. I'm not sure how people could have that big of a liability from something that was a maximum of $400. Even with a spouse working (I assume that's you!), hard to see how this would result in you being stuck with a huge bill. I guess if you both work two jobs and end up with enough income to not qualify, you could have a bill of $1600 from receiving this effectively 4 times.

FWIW I asked a family member and he said he hasn't seen or heard this and suggested the refinance or something similar possibility.

Also, I would anticipate that they are only going to let the tax cuts at the top expire. So we could see a return to the tax levels of the 90s (so definitely 35 to 39.6 and possibly 33 to 36). For a single person, those brackets kick in only for income after deductions over ~170k and ~370k. So I wouldn't be too concerned about a huge tax hike. We'll see.

I know more about pizza than you. Much more in fact. - Cerebral_DownTime

aoxo1 wrote:Ziner, it doesn't make sense that you would have that big of a swing from the change in the tables. Not sure if you own a house, but if so maybe you refinanced it and aren't getting as big of a deduction on the interest? I mean, it was $30 spread over 10 checks (40 weeks, I assume you get paid monthly? Otherwise they were definitely underwithholding you). People were only supposed to be getting $400, so the situations where it would be a problem would be something like 2 jobs (both employeers giving you the full amount), a spouse with an income that disqualifies you, or something similar. I'm not sure how people could have that big of a liability from something that was a maximum of $400. Even with a spouse working (I assume that's you!), hard to see how this would result in you being stuck with a huge bill. I guess if you both work two jobs and end up with enough income to not qualify, you could have a bill of $1600 from receiving this effectively 4 times.

FWIW I asked a family member and he said he hasn't seen or heard this and suggested the refinance or something similar possibility.

Also, I would anticipate that they are only going to let the tax cuts at the top expire. So we could see a return to the tax levels of the 90s (so definitely 35 to 39.6 and possibly 33 to 36). For a single person, those brackets kick in only for income after deductions over ~170k and ~370k. So I wouldn't be too concerned about a huge tax hike. We'll see.

Checked my paystubs because I am still trying to get to the bottom of this, for some reason my federal with holdings dropped about 80 bucks per bimonthly paycheck the time of the tax credit. At that same time my take home pay jumped about 40 bucks a paycheck, We get out raises about the same time so I figured between that, Obama, increase in 401K % i put away it was about right. Never thought to check the federal level. So if they were under with holding 80 a paycheck for 2/3rds of the year I suppose it could do it. Especially if my wife has the same type of deal, I need to check her with holdings. I did not in any way touch my with holdings ever. We dont own a house (trying to, this hurts that effort). I mean it is what it is, it just sucks ass. My effective tax rate is similar to last year so whatever, just pisses me off and is something I hope people who are tight on money don't run in to.

I checked mine to the year before and the reason for the shorter paychecks was due to a change in my medical insurance. I'm paying more for that but my federal withholding still went down disproportionally to my pay raise. Even with the extra medical insurance costs, they are not taking out enough fed withholding to cover the fed tax tab. I guess I'll claim 9 like Bill said and buy scratch off lottery tickets every week. this is voodoo no matter how you slice it. Peeing 10-15 dollars extra a week at people for the year and then taking it back at the end of the year doesn't really seems like a tax cut.

Orenthal wrote:I'm holding out. I know I will probably be getting a refund, but the amount of calculations I have to do is offsetting. I have plenty of Schedule D calculations and have to work in my milage to see if itemizing nets me more of my money back.

Ugggghhhhhhhhh, and I have an accounting degree, and took all the elctive tax courses...

Imagine a gynecologist when he comes home from work.

Your proctologist is holding on line #2

Hope is a moment now long pastThe Shadow of Death is the one I castKoo koo ka joob....I am the Walrus

Making work pay credit just lived up to its name again!!! I worked and I get to pay. My wife and I both have our deductions set at zero and we still owe 700. Had I not gotten my deduction for going back to school We would have owed 1850 more.

Not to mention being salty about only getting a $2500 deduction on student loan interest. When we weren't married we got $2500 each, now we get to share that. Ah well, my money is better spent on paying for others to stay in their home with a 2% interest rate than me putting that $700 toward the purchase of my house.

At least I figured it was coming this year. Thanks for the tax break Barry!!

Slangin' dice and pushing checks on the green felt - I've never paid a dime on any of it since college. Completely agree with FMB - bury it in as many things as you can, claim as much as you can with a a good tax guy, or else its BOHICA. Too all 'dem crooks.

"All Beckett needs to do to cap off this mess is order some fried chicken and beer" – 5/10/12 before Beckett got chased in the 3rd at Fenway.

Should be the sig line for you, FUDU, FMB and OJ. Maybe Danny, too, depending on the day.

Know what makes me a centrist? tax season. I don't need your FU. Got it just fine from the gubmint.

I got HAMMERED.

But I give the with alot less discrimination wthan you. Barry gets it real-time, W gets it post-fact, and Tom Kruise gets it everytime those damn Hoverround commercials tell the senior sthat I'm paying for their free chair.

Haha, I didnt even read my old post, I just knew I had one about taxes so I searched it. I was much saltier last year when I wasn't expecting it. This year I already had the cash set aside and knew it wouldn't be going to the house fund. Last year I hoped to put a nice addition in to the house fund, this year it is ready to go, just waiting on the right place.

I still quite don't get how someone can call fucking with the with holdings a tax cut. I am pretty certain it is just a refund advance...unless you dont have a refund advance then it is a big ol' stick in the ass.

I am maniacal about being +/- $100 on April 15. Banner year was 2009, I owed $6. This year had some BP money come in, but it was partially offset by an energy credit. Anyway, why in the fuck am I paying all these taxes and then have to pay $110 to the Department of State for a MF'in. Passport? The government makes me want to expel bile from every orifice. Simplify the goddamn tax code and stop using it for social engineering you brazen bunch of thieves. I fear the IRS more than I fear the inevitable liver problems my lifestyle will provide me with in later years. Our nation is in decline.